PROBLEMS OF INCREASING THE EFFICIENCY OF SMALL BUSINESS AND PRIVATE ENTREPRENEURSHIP IN THE REPUBLIC OF UZBEKISTAN

Аннотация

Small business and private entrepreneurship play a vital role in the modern economic system and are actively supported by the state. However, challenges such as outdated technology, low financial literacy, bureaucratic barriers, and difficulties in obtaining credit hinder their development. To overcome these issues, it is proposed to establish the "Republican Center for Youth Entrepreneurship Support", which will include business incubators, a consulting and analytical center, and a youth economic support fund. This initiative aims to create favorable conditions for young entrepreneurs, improve business infrastructure, and contributeto sustainableeconomic growth. Keywords:Small business, private entrepreneurship, economic development, business incubator, financial support, youth entrepreneurship, startup, investment, business environment, innovation. In the contemporary global economy, small businesses and private entrepreneurship are pivotal components driving economic growth, innovation, and employment. In Uzbekistan, this sector has been recognized as a cornerstone for achieving sustainable development and improving the population's living standards. Over the past decades, the Uzbek government has implemented a series of reforms aimed at fostering a conducive environment for entrepreneurs, includinglegislativesupport, financial incentives, and infrastructural development. Despite these efforts, several challenges persist that hinder the optimal efficiency of small businesses and private enterprises. These challenges include bureaucratic hurdles, limited access to financial resources, and insufficient integration into global markets. Addressing these issues is crucial for enhancing the competitiveness of Uzbekistan's economy and ensuring that small businesses can fullycontribute to national prosperity. This article delves into the existing problems affecting the efficiency of small businesses and private entrepreneurship in Uzbekistan. It also explores potential strategies and reforms aimed at improving the business climate, thereby enabling these enterprises to thrive and drive economicprogress. Since small business and private entrepreneurship, along with all related aspects, form an essential and integral part of the modern social production organizational structure, our government has allocated significant importance to their role in economic development and continues to providestatesupport. page1009 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue02,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai However, despite the high economic achievements in our country, several unresolved challenges remain in improving the business environment, which is the key factor in further developing small businessand privateentrepreneurship. These challenges include: Low levels of scientificand technological progress and technological backwardness at the national level (ahigh proportion of outdated and obsoleteequipment); Low legal literacy amongentrepreneurs; Insufficient understanding of small business and private entrepreneurship, as well as a lack of necessary knowledge (marketing, management, accounting, etc.) and experience required foroperating ina market economy; Strongadministrativebureaucracy; Strict conditions and requirements set by commercial banks due to a lack of trust in the potentialof newentrepreneurs; The complexity of obtaining licenses due to the majority of licensing organizations being located in thecapital; Illegal interference in and obstruction of entrepreneurial activities, as well as violations of privateproperty rights; The absence of a guarantee fund for the development of entrepreneurship to provide coverage for the unsecured portion of loans granted by commercial banks for purchasing new technological equipment; The urgent need to ensure employment, especially considering that approximately half a million young people graduate from vocational colleges and academic lyceums annually. Creating job opportunities and providing them with material and economic support is a pressing issue. Recommended Measures toAddress These Challenges To address thesechallenges, thefollowing measures are recommended: Systematically and thoroughly analyze our country’s business indicators published in the "Doing Business" report by leading international financial institutions, particularly the World Bank, and eliminateexisting shortcomings and deficiencies; Strengthen training and professional development for entrepreneurial personnel; Implement the provisions of the Decree of the President of the Republic of Uzbekistan No. PF-4354, dated August 24,2011; Consider the key directions of the economic program outlined in the speech of 1 st president Islam Karimov at the Cabinet of Ministers meeting on January 17, 2015, summarizing thecountry’ssocio-economic development in 2014and plans for 2015; page1010 INTERNATIONAL